1 week ago
10
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
President Trump and Republicans in Congress are eliminating federal incentives to buy electric vehicles, but carmakers need to keep selling and investing in them.
Aug. 3, 2025, 5:00 a.m. ET
Sales of Teslas are plunging. General Motors and other automakers are increasing production of big pickups and sport utility vehicles. Republicans have killed incentives for electric vehicle purchases.
Electric vehicles have clearly lost momentum in the United States. And combustion engine cars and trucks are enjoying a renaissance to the dismay of environmentalists who worry about air pollution and greenhouse gases.
But there’s reason to believe that electric vehicles will remain a significant part of the U.S. car market and that sales of these models will eventually grow again in the coming months.
Electric vehicles from Tesla and some other automakers are less vulnerable to President Trump’s tariffs than many conventional cars because more of their parts are made in the United States. Advocacy groups are conducting marketing campaigns to emphasize the lower fuel costs and other advantages of electric vehicles. And automakers appear to realize that they cannot give up on electric cars if they hope to remain competitive globally.
Washington has become hostile to electric cars.
Government policy on electric vehicles has reversed since Mr. Trump was elected. For consumers, the most visible change is the elimination of tax credits of up to $7,500 for electric vehicle purchases and leases.
The credits, which Democrats put in place when Joseph R. Biden Jr. was president, will now expire at the end of September under the big policy and tax law that Mr. Trump signed in July.
